Problem 1 NPOIntergenerational Learning Group (ILG) is a not-for-profit organizationthat aims to leverage the knowledge and experience of Seniors to enhance the learning of high school aged children while offering Seniors an opportunity to socialize and interact with a younger generation while learning about social media. The two programs that ILG runs are called Life Skills and Socialize. The Life Skills program involves the Seniors sharing skills that they developed over their lifetime such as how to grow a garden, how to preserve fruits and how to play bridge. The Socialize program involves the high school aged children teaching the Seniors how to use popular social media aps. ILG also maintains two small meeting spaces at the local seniors centre. One meeting space for the Life Skills events and the otherforthe Socialize events.On January 1, 2020 ILG received an endowment contribution of $1,000,000 from a wealthy widower, Ted Astaire,that learned to use TikToK while taking part in the Socialize program. He now has over 3,000,000 followers due to his stellar tap-dancing skills. Mr.Astaire specified that the first $10,000 of investment income earned in each year is to be used to purchase new furniture and equipmentfor the Socialize program. Any amount in excess of the restricted amount is to be used for general operations.Investment income earned on the endowment investment in 2020 was $98,000.ILG received a restricted contribution of $120,000 to be used for the Life Skills Program. Unrestricted pledges of $200,000 were received in 2020. Based on past experience it is expected that 95% of them will be paid. ILG receives a provincial grant in November of each year for the following years operations. ILG received $100,000 in November of 2019 and $102,000 in November of 2020.The following information pertains to expenditures for general operations and two programs for ILG.GeneralLife SkillsSocializeAmount payable @ December 31, 2019$ 18,000$ 8,500$ 2,800Cash outlays during 2020126,00082,00064,000Amount payable @ December 31, 202032,0006,4003,800Capital AssetsILG follows the policy of using straight line amortization over the useful life of capital assets and takes a full year of amortization in the year of acquisition and none in the year of disposal.

FurnitureIn 2018, an individual donated computer equipment for ILG to use in the office. The Computer equipment had a fair value of $15,000 and an estimated useful life of 4 years at the time that the donation was made.During 2020, ILG purchased furniture at a cost of $10,000 using the investment income on the endowment fund restricted. The furniture has an expected useful life of 8 years.Furniture costing $24,000, with a useful life of 8 years and an estimated residual value of nil, was donated during 2019. The furniture was for use in the Socialize program meeting.Required: Assuming a December 31year end, prepare the 2020 journal entries related to contributions

under the following assumptions.A) Assume the company reports contributions using the deferral method. B) Assume the company reports contributions using the restricted fund method and has the following funds set up: general fund, capital asset fund, Socialize program fund, Life Skills program fund, and an endowment fund.